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Does telecommuting reduce vehicle-miles traveled? An aggregate time series analysis for the U.S

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  • Sangho Choo
  • Patricia Mokhtarian
  • Ilan Salomon

Abstract

This study examines the impact of telecommuting on passenger vehicle- miles traveled (VMT) through a multivariate time series analysis of aggregate nationwide data spanning 1966-1999 for all variables except telecommuting, and 1988-1998 for telecommuting. The analysis was conducted in two stages. In the first stage, VMT (1966-1999) was modeled as a function of conventional variables representing economic activity, transportation price, transportation supply and socio-demographics. In the second stage, the residuals of the first stage (1988-1998) were modeled as a function of the number of telecommuters. We also assessed the change in annual VMT per telecommuter as well as VMT per telecommuting occasion, for 1998. The models suggest that telecommuting reduces VMT, with 94% confidence. Together with independent external evidence, the results suggest a reduction in annual VMT on the order of 0.8% or less. Even with impacts that small, when informally compared to similar reductions in VMT due to public transit ridership, telecommuting appears to be far more cost-effective in terms of public sector expenditures.
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Suggested Citation

  • Sangho Choo & Patricia Mokhtarian & Ilan Salomon, 2005. "Does telecommuting reduce vehicle-miles traveled? An aggregate time series analysis for the U.S," Transportation, Springer, vol. 32(1), pages 37-64, January.
    • Handle: RePEc:kap:transp:v:32:y:2005:i:1:p:37-64
    DOI: 10.1007/s11116-004-3046-7
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    1. Stephen T. Ziliak & Deirdre N. McCloskey, 2004. "Size Matters: The Standard Error of Regressions in the American Economic Review," Econ Journal Watch, Econ Journal Watch, vol. 1(2), pages 331-358, August.
    2. Henderson, Dennis K. & Koenig, Brett E. & Mokhtarian, Patricia L., 1996. "Using Travel Diary Data to Estimate the Emissions Impacts of Transportation Strategies: The Puget Sound Telecommuting Demonstration Project," University of California Transportation Center, Working Papers qt0g01v83p, University of California Transportation Center.
    3. Choo, Sangho & Mokhtarian, Patricia L. & Salomon, Ilan, 2002. "Impacts of Home-Based Telecommuting on Vehicle-Miles Traveled: A Nationwide Time Series Analysis," Institute of Transportation Studies, Working Paper Series qt2gj976x6, Institute of Transportation Studies, UC Davis.
    4. David L. Greene, 1992. "Vehicle Use and Fuel Economy: How Big is the "Rebound" Effect?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 117-144.
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    More about this item

    Keywords

    aggregate analysis; telecommuting; teleworking; time series analysis; vehicle-miles traveled modeling/forecasting;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs

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